Let’s regularize this, shall we?

June 6, 2008by Atanu Dey

I think it is high time the government of India took some action. This whole thing is becoming regular enough that its normality should be acknowledged by having a ministry in the government which would frame proper regulation and oversee the industry. I propose that they frame the right tax codes. People would like to know what the tax rate is for income arising from rewards earned from murdering people?
For instance, how much should the income tax be on the earning of US$ 11.5 million that Mr. Muhammad Yaqoob Qureshi, minister of state for Haj and Minorities Welfare in the Uttar Pradesh government promised in February 2006 he will pay to the murderer(s) for the murder of the Danish cartoonists?

The Indian Express reports (thanks to The Acorn for the link) that “Akhil Bharatiya Gurjjar Mahasabha president Chaudhary Virendra Singh has put Rs 5 crore reward on Vasundhara Raje’s head.”

The question that the UPA government needs to urgently address is how much should the income tax be on these sorts of earnings. I would also like to know if I can write off my contributions to the collections that Mr Singh proposes to pay for the murders as a charitable contribution and thus gain some tax relief.

“The Supreme Court held that an embezzler was required to include his ill-gotten gains in his “gross income” for Federal income tax purposes.

While embezzlers, thieves, and the like are forced to report their ill-gotten gains as income for tax purposes, they may also take deductions for costs relating to criminal activity.

No business deduction is allowed “for any payment made, directly or indirectly, to an official or employee of any government [ . . . ] if the payment constitutes an illegal bribe or kickback”

http://www.deeshaa.org Atanu Dey

Idlinginc, this brings to mind the fact that mafia boss Al Capone was finally imprisoned for tax evasion.

http://acorn.nationalinterest.in Nitin

Tax laws are perhaps among the most abused ones in India. One recalls the “income tax raids” that were fairly common until mid-1990s. Some were genuine, others were used as tools to serve political ends.

Though less common, the “raid” continues to exist. One recalls how the tax authorities got interested in Mr Bachchan’s finances a couple of years ago.